Correlation Between Equinor ASA and Halliburton

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Equinor ASA and Halliburton at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Equinor ASA and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinor ASA ADR and Halliburton, you can compare the effects of market volatilities on Equinor ASA and Halliburton and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Equinor ASA with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinor ASA and Halliburton.

Diversification Opportunities for Equinor ASA and Halliburton

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Equinor and Halliburton is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Equinor ASA ADR and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Equinor ASA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Equinor ASA ADR are associated (or correlated) with Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Equinor ASA i.e., Equinor ASA and Halliburton go up and down completely randomly.

Pair Corralation between Equinor ASA and Halliburton

Given the investment horizon of 90 days Equinor ASA ADR is expected to generate 0.81 times more return on investment than Halliburton. However, Equinor ASA ADR is 1.23 times less risky than Halliburton. It trades about 0.09 of its potential returns per unit of risk. Halliburton is currently generating about 0.07 per unit of risk. If you would invest  2,650  in Equinor ASA ADR on April 4, 2022 and sell it today you would earn a total of  733.00  from holding Equinor ASA ADR or generate 27.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Equinor ASA ADR  vs.  Halliburton

 Performance (%) 
      Timeline 
Equinor ASA ADR 
Equinor Performance
0 of 100
Over the last 90 days Equinor ASA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.021
Payout Ratio
0.21
Forward Annual Dividend Rate
0.71
Dividend Date
2022-05-27
Ex Dividend Date
2022-05-12

Equinor Price Channel

Halliburton 
Halliburton Performance
0 of 100
Over the last 90 days Halliburton has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in August 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0153
Payout Ratio
0.26
Last Split Factor
2:1
Forward Annual Dividend Rate
0.48
Dividend Date
2022-06-22
Ex Dividend Date
2022-05-31
Last Split Date
2006-07-17

Halliburton Price Channel

Equinor ASA and Halliburton Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Equinor ASA and Halliburton

The main advantage of trading using opposite Equinor ASA and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinor ASA position performs unexpectedly, Halliburton can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Halliburton will offset losses from the drop in Halliburton's long position.
The idea behind Equinor ASA ADR and Halliburton pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go